Societe Generale ((SCGLY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Societe Generale’s recent earnings call painted a picture of robust financial health, marked by significant revenue growth and improved cost efficiency. The bank’s strong capital position was emphasized, although concerns were raised regarding increasing bankruptcy rates in France, a decline in equities revenues, and potential regulatory and tax changes that could impact future performance.
Strong Revenue Growth
Societe Generale reported a 6.7% increase in revenues over the first nine months of 2025, reaching EUR 20.5 billion, excluding asset disposals. This growth underscores the bank’s ability to enhance its financial performance despite challenging market conditions.
Improved Cost Efficiency
The bank achieved a more than 2% reduction in costs for the first nine months of 2025 compared to the same period in 2024. This improvement led to a cost-to-income ratio of 63.3%, surpassing the 2025 target of below 65%.
Solid Capital Position
Societe Generale’s CET1 ratio increased by 20 basis points this quarter, reaching 13.7%, which is above the Basel IV target of 13%. This solid capital position reflects the bank’s financial strength and stability.
High ROTE Achievement
The group achieved a return on tangible equity of 10.5%, marking a 3.4 percentage point increase compared to the same period in 2024. This improvement highlights the bank’s effective use of its tangible assets to generate profits.
Successful Share Buyback
The completion of a EUR 1 billion additional share buyback program has further strengthened Societe Generale’s capital position, demonstrating its commitment to enhancing shareholder value.
BoursoBank Client Growth
BoursoBank, a subsidiary of Societe Generale, has gained 1.5 million clients since Q3 2024, reaching its CMD target of 8 million clients 18 months ahead of schedule. This growth reflects the bank’s successful client acquisition strategies.
Increased Bankruptcy Rates in France
There has been a slight increase in bankruptcy rates in France, impacting the SME segment’s cost of risk. However, the overall risk remains contained, indicating the bank’s resilience in managing credit risk.
Equities Revenue Decline
Equities revenues decreased by 7%, attributed to a strong comparison base from Q3 2024 and negative impacts from FX and day one accounting adjustments. This decline highlights challenges in maintaining growth in the equities segment.
Pressure from Potential Tax Changes
Concerns were raised about potential tax changes on share buybacks and dividends, which could affect Societe Generale’s capital distribution strategies. This uncertainty poses a challenge for the bank’s future financial planning.
Regulatory Challenges
Potential caps on banking fees in France, discussed in Parliament, could impact revenues in the French retail segment. This regulatory challenge underscores the need for strategic adjustments to maintain profitability.
Forward-Looking Guidance
During the earnings call, CEO Slawomir Krupa and CFO Leopoldo Alvear highlighted the bank’s impressive financial results for 2025. With a 6.7% revenue increase and a cost-to-income ratio of 63.3%, the bank exceeded its targets. The CET1 ratio improved to 13.7%, and the return on tangible equity rose to 10.5%. These achievements, along with a successful share buyback program, position Societe Generale for continued growth and shareholder value enhancement.
In conclusion, Societe Generale’s earnings call reflected a strong financial performance with notable revenue growth and cost efficiency improvements. Despite challenges such as increased bankruptcy rates and potential regulatory changes, the bank’s solid capital position and strategic initiatives indicate a positive outlook for future growth.